Growing your veggies need not be limited to personal consumption alone; selling them to clients can be lucrative, too. But before venturing into such an enterprise, make sure you conduct a cost analysis so you would know what to expect once you get into the business. This way, you could prepare and fulfill the financial requirement in raising and retailing vegetables beforehand and manage cash flow accordingly. Here’s a list of the expenses to consider:
Two kinds of expenses: controllable and fixed
Controllable expenses are the costs that are subject to change, which will depend on the volume of vegetables that you will sow and sell. Fixed expenses, on the other hand, are costs that do not change over the years like the price of the land where you’ll cultivate your veggies, which you either buy or rent. Loans and farm workers’ wages belong in the fixed costs estimate.
Preparation of materials and processes
Before cultivating vegetables, calculate the total fees of the materials you’ll need for land preparation. Costs in the pre-production of crops must also involve expenses in soil testing, purchasing vegetable seeds and planting materials, and salary of your farmworkers.
Fees in mulching, fertilizing, weeding, and pest control are the things that must be added to your list. In many cases, costs will highly depend on what your farm needs. You might need to spend on irrigation if your area does not get sufficient water, or if you have farm animals, you will be forced to protect your veggies by installing fences.
Costs don’t end after planting and nurturing the crops. Harvesting may also cost you in terms of labor as you’ll need workers in gathering, sorting, and packing the harvests, depending on how much you’ve produced. Aside from laborers, include the cost of packs or containers that will hold your produce as well as the transportation and fuel needed to carry them from the farm to market, storage, or directly to buyers.
Outside farm operations, depending on how big your enterprise is, you might also need to add overhead expenses in cost estimation including a computer for data management, utility bills, property taxes, and insurance. Marketing and advertising your products, if wanted, can also be considered and listed in your estimated costs.
Once you’ve financially planned everything from preparation to marketing your vegetables, you’re all set to grow and sell your veggies.